Which of the Following Is an Example of Foreign Direct

question 36

Multiple Choice

Which of the following is an example of foreign direct investment in China?

• A)U.S.auto entrepreneur Elon Musk buys stock in Alibaba Group Holding Limited of Hangzhou,China.
• B)Chinese Shenzen Airlines company buys a small U.S.midwest airline company,Air Chicago.
• C)The U.S.company Walmart buys a warehouse in Shanghai.
• D)The bank of China purchases U.S.Treasury bonds.
• E)A U.S.foreign exchange speculator buys $200,000 worth of the Chinese currency the yuan.

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Definitions:

Portfolio Standard Deviation

A statistical measure of the volatility of returns from a portfolio of assets, indicating the degree of investment risk.

Covariances

A measure that indicates the extent to which two variables change together, determining the degree of their correlation.

Expected Return

The weighted average of all possible returns for an investment, with weights being the probabilities of each outcome.

Standard Deviation

A statistical measure of the dispersion of returns for a given security or market index, indicating how much returns can deviate from the average return.